Southeast Asia's $160 Billion Gas Buildout Under Fire from Strait of Hormuz Disruptions

A $160 billion gas buildout in Southeast Asia is being stress-tested by disruptions to the Strait of Hormuz, which has driven up prices and led governments and developers to reconsider their reliance on imported gas.

According to Global Energy Monitor (GEM), over 100 GW of gas-fired power capacity remains in development across the region, with LNG import capacity increasing from approximately 47 million tonnes per annum (mtpa) in 2024 to around 70 mtpa by 2035.

However, these developments come with concerns about supply disruptions and price volatility. GEM's Asia Gas Tracker project manager, Warda Ajaz, noted that import capacity does not guarantee secure LNG supply, access to LNG does not guarantee affordability, and domestic gas provides a meaningful buffer only where sufficient supply is already available.